Distance Lanlording, gentrification & city ordnances

Distance Lanlording, gentrification & city ordnances

Rental Property Investor · Washington, DC · Member since 2015 · 278 posts · 156 votes

The basics- I live in DC, I have a rental in Ocala, FL sorta managed by my parents also in that city. When I bought the place the house to the left of it was a vacant tear down shack filled with junk, the house to the right was unfinished and vacant for years and years. This month I have received notices from the city about an ordinance violation that cite the ordinance but fail to mention the exact violation. The 1st notice was just to me, the second, the tenants got a copy and I had to spend time calming down the wife (my tenant) because the city cites the whole ordinance and she was going on and on about graffiti and vines, which I knew wasn't the problem.

I had contacted the tenants after talking with the city the 1st time I received a notice. It appears one of their neighbors complained about their junky yard.  I suspect the C- neighborhood I bought into in the late 00s is growing up a grade and kinda gentrifying, if there really is such a thing in Ocala.

I observed full on gentrification in my own neighborhood in DC and I suspect something similar is happening where my rental is. The two vacant houses that used to bookend my rental have been fixed up and occupied. My mom suspects the complaining neighbor is a guy who moved in recently. In my DC neighborhood, new people would complain and engage city services to better the neighborhood and old timers would complain about the new comers wanting to change everything. The new guy might be a harbinger of things to come.

On the plus side. Hey my property value is going up! Yay. However it is a D+ looking property in a B-/C+ neighborhood and I'd have to fix it up to get full retail price. It's in walking/biking distance (if it isn't 90F+) to a A class neighborhood. There are plenty of amenities (library, grocery, parks, etc) within a short drive or walk.

My problem is the city is now threatening fines. My other problem is the husband (I tend to talk to the wife) and his junk and his landscaping equipment. I'm in the middle of dealing with another property I bought in Baltimore and some family in-law problems. If it weren't for those other distractions, I would look into removing the tenants and fixing and flipping it. If I remove them now, I would need to fix up the house and I don't have time to go down to Florida do that right now. I know my tenants want to buy the house, but I'm having doubts they would be able to afford it and maintaining it so they won't get in trouble and the timing is bad for all of us.

Warning or lesson for long distance landlords, unless you're going by the property often you may be slow to pick up on neighborhood change. Also there is little you can do about city ordinance violations from several states away, short of asking your tenant to fix it.

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Boca Raton, FL · Member since 2016 · 24 posts · 17 votes
10y

Hoping your fixes are easy enough and cost effective, and that tenants continue to work on complying to tide you over for now.  It sounds like you have a good plan.

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  • Patrick LiskaPro Member
    Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes
    10y

    That,s where, and no offense to your Parents, hiring a PM company would have resolved your problems in maintaining the property and dealing with the town. why not see if the tenants can afford to buy it?, not your problem if they can maintain it after, as long as you sell it.

  • Member since 2016 · 13k+ posts · 12k+ votes
    10y

    You are going to have to bite the bullet at some point. You will defiantly need to get rid of the tenants renovate and then your best option may be to sell.

    Now is probably the time to take a win and move on but in the mean time you need to get someone in there to bring the exterior up to code. You need to start getting real tough with your tenants. They are the cause of your problem if I read this right.

  • Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    10y

    Sell it run with with your profit. Get a home you are close to.  Or always on the surveillance list. In my town many landlords have a lien on because tenants do not pay trash on time. Weeds grown over 6" tall get turned in on a watch list as "fire hazard" for 3 years  turned in by these hateful neighbors.  

  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    10y
    Originally posted by @Sam Shueh:

    Sell it run with with your profit. Get a home you are close to.  Or always on the surveillance list. In my town many landlords have a lien on because tenants do not pay trash on time. Weeds grown over 6" tall get turned in on a watch list as "fire hazard" for 3 years  turned in by these hateful neighbors.  

     Don't give responsibilities to tenants to maintain or keep your property clear of State or City ordinances - - just very poor management style that leads to these complications that YOU then have to handle.  Hire a yard service (direct write off on taxes), and adjust the rent (at least partially).

    Yard conditions directly impact the curb appeal and that impacts the marketability of the unit(s).

    Penny wise and dollar foolish!

  • Investor · Bushnell, FL · Member since 2016 · 456 posts · 224 votes
    10y

    Hello M. Marie 

    Do you have any idea what it could cost you to first get the house out of code violations and then rehab ? Code violations depending on what are might not be as bad as it first appears. You might be a bit over anxious because you feel a bit helpless because you have nobody to help you at this time. I had a property that was in Stone Mountain Ga. while I live in Fl. And because I was a assent owner, it seemed like every yr the code officer would find something to tag my house with. One year I was told that I needed to paint my house in order to be code compliant. I could have fought it but in the long run it was easier and probably cheaper to just get it painted. I drove up with ladders and painting supplies then bought paint and  hired a couple of local boys that I had lined up thanks to craigslist, they painted the house in a day, I also had them pick up the branches and other stuff around the yard along with trimming some over grown bushes in the back yard. I called the code enforcement and told them I was in compliance. If youneed a bit more time they will give you more as long as you tell them you have plans in motion or your working hard to fix the problem. As for rehabbing and selling or sell as is ? You have to have a idea what your budget is and can you rehab it for that budget. Is it worth it? It sounds like it might be if the neighborhood has gone up that much in value like it has in most areas now. Im sure yu realize all of this , it just helps getting reminded when your upset. I may be able to help as a boot on the ground person for you. If you would like to discuss it further, just send a colleague request and we can go from there.

    Either way I hope the best for you, 

    God Speed 

    Michael Short 

  • Contractor · GA · Member since 2016 · 268 posts · 54 votes
    10y

    So sorry, sounds like you need a good local PM....

  • San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y

    Honestly, it sounds like an easy fix.  Give your tenants a notice to comply or quit.  From what I read, they just need to clean up the junky yard, right?  So, tell them to clean up the junky yard or they get evicted.

    And if they get evicted, there's no rule that says you have to upgrade it to get top dollar.  So, you rent it without doing a ton of work to it, for cheaper than the top rent, and someone gets a cheap place in a great location, who is willing to keep the yard in good shape.  

    I just don't think this is as bad as you think.  

  • Rental Property Investor · Washington, DC · Member since 2015 · 278 posts · 156 votes
    10y

    Thank you @Account Closed & @Account Closed. The plan so far is to get my dad to put up a tall fence. My dad had the same problem with the city and his contracting equipment, so he put up a high fence to corral his stuff, problem solved. I called my dad and he said he'd take a look at it today, more likely tomorrow. I'll call a fence company if he doesn't make it out there. The funny thing is the tenants are landscapers so the grass in the front is kept well, it's just the back yard where they are storing equipment. As a response to the letter received from the city I've told them they will need to store anything that won't fit in the shed somewhere else.

    The wife sent me photos of the rear yard and my mom confirmed that they cleaned up the yard. They didn't remove everything, but it's not as junky as before, which is why I was surprised I got another letter from the city. If the neighbor is making an issue of it, the best thing might be to make sure everything is out of his sight with a privacy fence. I've been a complainy neighbor and I know the city has to at least go through the motions.

    I planned to do some upgrades and sell, but not this year and everything has been complicated by the in-law eldercare clusterfxxk in California with expensive lawyers. No, it doesn't relate to real estate but it is the most current and emotionally/financially draining thing going on in my life right now, leaving just enough sanity for my W-2 job. Yes, @Patrick Liska & @Juan Jackson a good PM would have taken care of this, but the key is a "good" PM and I would still have to pay to clean up the yard, the eviction, prepping for new tenants, screening and getting new tenants.

  • San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y
    Originally posted by @M Marie M.:

    Thank you @Account Closed & @Account Closed. The plan so far is to get my dad to put up a tall fence. My dad had the same problem with the city and his contracting equipment, so he put up a high fence to corral his stuff, problem solved. I called my dad and he said he'd take a look at it today, more likely tomorrow. I'll call a fence company if he doesn't make it out there. The funny thing is the tenants are landscapers so the grass in the front is kept well, it's just the back yard where they are storing equipment. As a response to the letter received from the city I've told them they will need to store anything that won't fit in the shed somewhere else.

    The wife sent me photos of the rear yard and my mom confirmed that they cleaned up the yard. They didn't remove everything, but it's not as junky as before, which is why I was surprised I got another letter from the city. If the neighbor is making an issue of it, the best thing might be to make sure everything is out of his sight with a privacy fence. I've been a complainy neighbor and I know the city has to at least go through the motions.

    I planned to do some upgrades and sell, but not this year and everything has been complicated by the in-law eldercare clusterfxxk in California with expensive lawyers. No, it doesn't relate to real estate but it is the most current and emotionally/financially draining thing going on in my life right now, leaving just enough sanity for my W-2 job. Yes, @Patrick Liska & @Juan Jackson a good PM would have taken care of this, but the key is a "good" PM and I would still have to pay to clean up the yard, the eviction, prepping for new tenants, screening and getting new tenants.

     Sounds perfect!  Plus, it's possible the city doesn't realize it's been cleaned up.  If there's someone at the city you can email, you can attach a photo to the email.  With Google mail, you can even just put the photo inline - so it just shows up in the email without having to click on anything.

    And I agree about the PM.  You'd have the expense, plus extra PM fees to oversee what's happening, etc.  You don't sound like someone who needs a PM, especially with your Mom able to go drive by it.  Maybe your mom can take photos for you?  Send them to you in an email, and you can forward them to the city?

    I'm really sorry about your in-law eldercare problems.  How exhausting.  As they say, though, it's best to not make major decisions when you're going through something like that.  I'm wondering if you shouldn't keep this rental.  It sounds like it can be managed okay, and as you say, it's in an up and coming neighborhood.  Demand will only get better.    Good luck in whatever you decide.

  • Boca Raton, FL · Member since 2016 · 24 posts · 17 votes
    10y

    Hoping your fixes are easy enough and cost effective, and that tenants continue to work on complying to tide you over for now.  It sounds like you have a good plan.

  • Real Estate Agent · Ocala, FL · Member since 2015 · 21 posts · 6 votes
    10y

    Hey @M Marie M.,

    Thanks for your insights into what can be a really rough experience for long distance landlords. I have been involved in real estate in the Ocala area for some time and have seen a number of run-ins with the code enforcement department. I'd be happy to chat with you about any way that I might be able to help from this end. Thanks again for the insight!

  • Rental Property Investor · Washington, DC · Member since 2015 · 278 posts · 156 votes
    10y

    Okay follow up.

    Yesterday my mom informed me that the inspector called her and said the yard passed inspection. What I think helped ( besides paying my Pop to clean up the yard-- he tears down houses and other stuff involving loud trucks and dirt for a living) was the constant communication with the city inspector's office and the named inspector and promises to put up a privacy fence. I'll follow up with the inspector to make sure we're done.

    It seems mine wasn't the only yard cited and there was some confusion of where the property line is.

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